Our Take
The bottom line:
Forward Financing’s merchant cash advance may be a good option for bad-credit borrowers in need of fast financing of up to $300,000, but, like all MCAs, the funding cost will be high.
Forward Financing - Merchant cash advance
Max Loan Amount
$300,000
Min. credit score
500
Apply now
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Pros & Cons
Pros
- Low credit score requirement compared with other MCAs NerdWallet evaluates.
- Can be used to build business credit.
- Solid user ratings on platforms like Trustpilot and Google.
Cons
- High origination fees.
- Daily or weekly repayments required.
- Need to contact company to request a payment adjustment if your business’s revenue drops.
Full Review
Forward Financing is an online lender that provides merchant cash advances (MCAs) for small-business owners in need of fast access to money. Forward Financing’s MCA offers up to $
300000
for use across a range of business expenses. Repayments are made daily or weekly, and cash advances typically take anywhere from 3
to 12
months to pay off. Founded in 2012 and headquartered in Boston, Forward Financing works with business owners in all 50 states. The company has earned strong reviews on platforms like Trustpilot and Google, reflecting positive customer experiences.
Did you know...
MCAs are not technically small-business loans and therefore they work differently than business loans do. While traditional business loans base repayments on an interest rate, MCA payments are tied to a portion of your business’s future revenue, plus fees. That means if your sales slow down, your payments do too. MCAs have more in common with payday loans than traditional small-business loans, and are not regulated by the federal government.
Forward Financing is best for borrowers who:
- Can’t qualify for traditional business financing. Many traditional business loans have high barriers to entry, especially bank loans. With Forward Financing’s MCA, you may be able to secure funds with bad credit, no collateral and12months in business.
- Need fast access to cash. Depending on when you apply, you may be able to receive funds the same day.
- Want a short-term solution. MCAs are designed for short-term needs, not long-term financing. With Forward Financing, you’ll pay back the advance over an estimated3to12months.
- Have strong profit margins. Since MCAs are costly, they’re best suited for businesses with healthy profit margins. This helps ensure you can cover the repayment while still managing day-to-day expenses.
🤓 Nerdy Tip
Merchant cash advances are typically one of the most expensive types of business financing. In general, you should consider all other small-business funding options before an MCA.Forward Financing MCA requirements
To qualify for an MCA from Forward Financing, you’ll need to meet the following minimum requirements:
- Credit score:500.
- Time in business:12months.
- Annual revenue: $120000.
Forward Financing MCA features
Loan amount | $ 5000 to $300000 . |
Estimated APR | Not disclosed. |
Fees |
|
Estimated term length | 3 to 12 months. |
Repayment schedule | Daily or weekly. |
Funding speed | Approval within hours and funding as soon as the same day. |
Where Forward Financing stands out
Easy access to funds
Forward Financing says its application process takes minutes, with approval decisions typically made within a few hours. If approved before 3:00 p.m. ET, borrowers may receive funding the same day. As part of the application, Forward Financing collects basic personal and business information and connects to business owners’ bank accounts via Plaid for easy access to bank statements.
Borrowers may also tap into additional funds without having to submit a new application if they’ve paid back at least half of their current cash advance.
» MORE: Best fast business loans
Can be used to build business credit
Forward Financing reports borrowers’ payment activity to Experian Business Credit, one of the three major business credit bureaus. Its startup-friendly qualification criteria can help newer business owners with strong cash flow establish a business credit profile, assuming payments are made on time.
From Our Nerds: Convenient funding is helpful, but can be a double-edged sword
“Forward Financing’s streamlined application process and easy access to additional funds can be a lifeline for business owners in urgent need of short-term capital. However, that convenience can be a double-edged sword. If you repeatedly tap into more cash advances, you may find yourself unintentionally entering a cycle of debt that’s hard to get out of.”
Ryan Brady, lead writer, Small Business
Where Forward Financing falls short
High origination fees on smaller advances
Forward Financing charges an origination fee, which is an upfront cost borrowers pay. This fee scales with the size of the cash advance, and for smaller funding amounts, it can be relatively steep. For example, the company charges $495 on advances between $5,000 and $10,000. This translates to an origination fee of between 5% and 10%. That’s relatively high compared with other MCA providers NerdWallet evaluates, some of which don’t charge an origination fee at all.
Have to reach out to account executives to adjust payments
Forward Financing withdraws payments from your business bank account based on estimated revenue at the time you applied. While payment amounts may be adjusted if your sales decline, you'll need to contact an account executive to request a change — an extra step that may be inconvenient for some business owners.
Alternatives to Forward Financing
Fundomate
Consider if: You need more funding than Forward Financing offers.
Fundomate is another online provider offering MCAs to small-business owners. It offers larger funding amounts up to $
500000
, making it a good alternative for business owners seeking a higher advance. Like Forward Financing, it requires at least 12
months in business and $120000
or more in annual revenue, but has a slightly higher minimum credit score requirement (600
vs. Forward Financing’s 500
). Expansion Capital Group
Consider if: You can’t meet Forward Financing’s time in business and revenue requirements.
Expansion Capital Group
Expansion Capital Group - Merchant cash advance
Min Credit
500
Apply now
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Expansion Capital Group may approve business owners with as little as
6
months in business and $100000
in annual revenue, making it a more accessible option for startups that don't meet Forward Financing’s slightly stricter requirements. Like Forward Financing, Expansion Capital Group’s MCA offers up to $300000
, but because it doesn’t report borrowers’ payment activity to commercial credit bureaus, it can’t be used to build business credit. » Interested in more options? Check out our list of best merchant cash advance companies.
Apply now
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New elevated offer
